WATCH LIST
ARMENIA
Armenia has several
remaining steps to take to fulfill its intellectual property rights commitments
under the 1992 U.S.-Armenia Trade Agreement. In addition, the Armenian
intellectual property regime does not appear to be TRIPS-consistent in its
current form, so certain changes may have to be made in preparation for
Armenia's accession to the WTO. At present, Armenia does not provide any
protection or rights to U.S. and other foreign sound recordings or clearly
provide retroactive protection for works or sound recordings under its Copyright
Law. In addition, there is weak enforcement of intellectual property rights in
Armenia. New criminal penalties for intellectual property rights violations have
been adopted; however, there have been no known convictions under the new law,
and it is unclear whether the Government has the authority to commence criminal
copyright cases.
AZERBAIJAN
Azerbaijan has several
remaining steps to take before fulfilling its intellectual property rights
commitments under the 1995 U.S.-Azerbaijan Trade Agreement. Specifically,
Azerbaijan is not providing any protection or rights to U.S. and other foreign
sound recordings, and Azerbaijan does not clearly provide retroactive protection
for works or sound recordings under its copyright law. In addition, there is
weak enforcement of intellectual property rights in Azerbaijan. New criminal
penalties for intellectual property rights violations have been adopted.
However, the provisions under the Azerbaijani Criminal Code are minimal and are
limited to copyright and patent violations, completely excluding neighboring
rights violations. In addition, it seems the Customs Code may not provide the
proper authority to seize material at the border as required by the TRIPS
Agreement.
BAHAMAS
The United States is
disappointed that the Bahamas has not yet implemented its commitment to the
United States to enact legislation to correct deficiencies in its copyright law.
The key concern remains the provisions in the law permitting the compulsory
licensing to Bahamian cable operators of retransmission of premium cable
television programming. Inadequate remuneration for the compulsory licensing of
free-over-the-air broadcasts is a related concern, particularly with respect to
uses by hotels and other commercial enterprises. The U.S. Government urges the
Bahamas to enact swiftly the necessary amendments to its copyright law. The
United States will conduct an out-of-cycle review to review actions in this
regard. At the same time, the U.S. Government continues to encourage U.S.
copyright owners and operators of premium cable services to enter into
negotiations with licensed Bahamian cable companies to provide voluntary
licensing on commercial terms for the cable transmission of copyrighted works in
the Bahamas.
BELARUS
Belarus has several
remaining steps to take to fulfill its intellectual property rights commitments
under the 1993 U.S.-Belarus Trade Agreement. Enforcement of intellectual
property rights in Belarus is also very weak and piracy levels are extremely
high. In fact, while Belarus has amended its Criminal Code to adopt deterrent
penalties for intellectual property rights violations, the Criminal Code still
does not contain the proper authority for officials to initiate criminal
copyright cases. Moreover, Belarus is not providing any protection or rights to
U.S. and other foreign sound recordings, nor does it clearly provide retroactive
protection for works or sound recordings under its Copyright Law. Belarus is not
yet a party to the Geneva Phonograms Convention. Belarus has also become a
transshipment point for pirate materials throughout the region. The United
States is very concerned about recent reports that optical disk production
capacity has migrated from Ukraine into Belarus due to lax border enforcement.
We urge Belarus to implement needed legislative reforms, and enact a strong
optical disk control regime before the piracy situation increases
further.
BOLIVIA
Despite some early signs of
progress, Bolivia made little headway in strengthening its intellectual property
rights regime last year. Bolivian legislation designed to bring its IPR regime
up to international standards continues to be stalled in the legislature.
Enforcement activities have decreased, and allegations of corruption among
judges, prosecutors and police have increased. The United States is heartened by
the appointment of a new director to head the intellectual property rights
service (SENAPI), and encourages Bolivia to support the director's efforts to
improve the IPR situation in Bolivia. The United States looks to Bolivia to
increase enforcement efforts and enact its IPR reform legislation quickly to
comply with international standards.
CANADA
Canada made some progress in
improving its IPR regime over the past year, including amending its patent law
to provide at least a 20-year term of protection for patents filed before
October 1, 1989. However, the problems that originally caused Canada to be
placed on the Watch List remain largely unresolved. For example, Canada does not
provide adequate data protection in the pharmaceutical area, and systematic
inadequacies in Canadian administrative and judicial procedures allow early and
often infringing entry of generic versions of patented medicines into the
marketplace. Moreover, progress has stalled on resolving the outstanding issue
of national treatment of U.S. artists in the distribution of proceeds from
Canada's private copying levy and its "neighboring rights" regime. The United
States is also concerned about Canada's lax, and potentially deteriorating,
border measures that appear to be non-compliant with TRIPS requirements.
Finally, the U.S. Government remains concerned about the potential use of
compulsory licenses for Internet retransmission of broadcast signals.
CHILE
Chile's intellectual
property rights laws do not appear to be fully consistent with their
international obligations, and shortcomings remain in copyright and trademark
enforcement. Chile has made efforts to arrest those who infringe copyrights, but
attempts to enforce copyrights in Chile have met with considerable delays in the
courts and weak sentences for offenders. In 2000, for instance, the legislature
passed a new criminal procedure law designed to improve the old system. However,
separate legislation intended to bring Chile's legal framework into compliance
with TRIPS is still pending. Indeed, the bill as it stands now does not appear
to provide for the effective use of injunctions in copyright and trademark
infringement cases.
Furthermore, the United
States is quite concerned about the November 2001 announcement by the Ministry
of Health that it would issue marketing approval for pharmaceuticals without
regard to whether a patented version already exists. Marketing approvals for
many patented drugs have already been issued, seriously undermining the rights
of patent holders. Patent approval also remains slow, with time for approval
averaging over four years. The United States urges Chile to strengthen its
enforcement efforts, and enact legislation to fully comply with TRIPS
obligations including by providing adequate protection of confidential data and
an effective linkage between the health and patent authorities.
COSTA RICA
Costa Rica has taken
important steps since late 2001 to develop a concerted government strategy for
improving the enforcement of intellectual property rights. In addition to other
positive measures, Costa Rica has appointed specialized prosecutors, intensified
training activities for officials involved in enforcement, and implemented a
decree focused on legitimizing software used by government agencies. The United
States is recognizing this progress by moving Costa Rica from the Priority Watch
List to the Watch List. Nonetheless, it is essential that the recent initiatives
be fully and expeditiously implemented and that progress continue. Key
indications of continuing improvement will be: passage of legislative proposals
to correct remaining deficiencies in the criminal procedures laws and the
intellectual property laws, including deficiencies in the data exclusivity
provisions; more prosecutions of IPR offenders, perhaps facilitated by the
establishment of a dedicated IPR unit within the Prosecutor's Office; and
vigorous enforcement efforts to reduce continuing high piracy levels, such as
closure of retail stores that rent or sell pirated products. In addition, the
United States urges Costa Rica to ensure that its new government software
legalization decree is implemented on schedule and in a technologically-neutral
manner. The United States will conduct an out-of-cycle review of these issues to
ensure that recent progress is sustained.
GREECE
Although Greece resolved the
WTO TV broadcasting case with the United States last year, optical disk piracy
and unauthorized book photocopying remain persistent problems. The United States
is encouraged by an increase in police and border enforcement efforts,
particularly with respect to business software. However, among European Union
member states, Greece continues to have some of the highest piracy rates of
music CDs, entertainment software, and business software. The lack of deterrent
penalties imposed on pirates and inefficient judicial action hamper Greece's
ability to reduce its piracy rates. The use of unauthorized computer software in
government offices also remains a problem. Patent protection for pharmaceuticals
remains inadequate as data exclusivity is linked directly to the length of
patents, rather than being protected in its own right. The United States urges
Greece to pursue sustained and deterrent enforcement actions, to ensure that
government entities use only authorized software, and to improve its protection
of pharmaceuticals as required by international obligations.
GUATEMALA
The United States welcomes
the appointment in June 2001 of a special prosecutor for intellectual property
rights matters, as part of the government's ongoing efforts to improve
enforcement and to implement intellectual property rights legislation enacted in
mid-2000. Nonetheless, continuing high piracy levels, particularly with respect
to business software applications, remain an ongoing concern, and one that has
not been adequately addressed through current enforcement and prosecution
activity.
ITALY
Despite Italy's enactment of
its Anti-Piracy Bill in September 2000 and increased enforcement actions in
2001, Italy continues to have one of the highest overall piracy and
counterfeiting rates in Western Europe. In particular, the rate of piracy of
business software by corporate end-users remains among the highest levels in
Europe, with losses approaching $285 million in 2001. Notwithstanding repeated
assurances, Italy still has not clarified the Anti-Piracy Bill's implementing
regulations for business software, that exempt copyright owners from a
requirement to apply government-approved stickers, for which a fee would be
charged, on their genuine copyrighted works. Without this exemption, Italy could
be in violation of its international obligations, which do not permit
conditioning protection on compliance with a stickering formality. The United
States urges Italy to resolve this issue without further delay.
JAMAICA
The U.S. Government is
heartened by the creation of Jamaica's Intellectual Property Office, and by
continued progress in enforcing existing intellectual property rights laws,
including with respect to the misuse of well-known marks. We understand that
Jamaican officials have categorically denied reports that Jamaica is considering
the compulsory licensing of encrypted broadcasts. The United States is
encouraged that Jamaica is continuing to seek fair, commercial
solutions to
this issue. Lack of parliamentary action to bring Jamaica's patent, industrial
design, and plant variety laws into conformity with international standards
remains the primary motivation for the country's inclusion on the Watch List.
The United States urges Jamaica to complete the process of enacting the
necessary legislation.
KAZAKHSTAN
Kazakhstan has several
remaining steps to take to fulfill its intellectual property rights commitments
under the 1992 U.S.-Kazakhstan Trade Agreement. In particular, Kazakhstan does
not clearly provide full retroactive protection for works or sound recordings
under its Copyright Law. In addition, there is weak enforcement of intellectual
property rights in Kazakhstan, and as a result, piracy and counterfeiting rates
are growing problems. New criminal penalties for intellectual property rights
violations, however, have been adopted, but the United States is concerned about
the effectiveness of the new Criminal Code provisions in deterring piracy and
counterfeiting, due to the high burden of proof threshold. The dearth of
intellectual property rights cases commenced under the new laws may reflect the
impact of this procedural requirement.
KOREA
Korea has taken significant
steps to strengthen its IPR enforcement and legislation. On enforcement, it has
created a new special enforcement unit which it intends to provide with "police"
authority, to step up its protection against software piracy. In addition, to
address concerns the U.S. Government has raised about Korea's failure to
implement a transparent, non-discriminatory, and sustained enforcement regime,
Korea has agreed to provide the United States with detailed data on its
enforcement efforts. Korea has made progress on strengthening its intellectual
property legislation, addressing several U.S. concerns related to its Copyright
Act and the Computer Program Protection Act. It also announced that it is
preparing legislation to provide exclusive transmission rights for sound
recordings and performances, which will resolve a longstanding concern. Despite
these important developments, U.S. concerns remain with respect to the
protection of temporary copies, technical protection measures, ISP liability,
and ex parte relief, the lack of full retroactive protection for pre-existing
copyrighted works, and continued counterfeiting of consumer products. Regarding
issues related to the protection of pharmaceutical patents, Korea resolved
questions related to its commitment to provide full protection against unfair
commercial use of test data submitted for marketing approval, but the lack of
coordination between Korean health and IPR authorities on drug product approvals
for marketing remains problematic.
KUWAIT
The United States recognizes
the recent efforts made by Kuwait to increase intellectual property protection.
However, due to continuing problems with copyright piracy, Kuwait will remain on
the Special 301 Watch List. Recognizing the importance of protecting
intellectual property in a modern, knowledge-driven economy and mindful of the
incentive that adequate protection provides for investors, Kuwait and the United
States have developed a work plan outlining the initial steps that Kuwait will
take to increase its efforts to reduce the high level of copyright piracy still
evident in Kuwait. The work plan includes short and medium-term action to, inter
alia, increase enforcement of current intellectual property laws, apply
deterrent penalties, revise copyright legislation, and increase cooperation
between the government and private industry. Successful implementation of the
work plan will serve as a basis for future cooperation between the United States
and Kuwait. The United States and Kuwait are in the process of documenting
Kuwait's intention to carry out this work plan. If we are unable to complete
this process satisfactorily by May 31, 2002, Kuwait will be raised to the
Priority Watch List.
LATVIA
Although not a producer of
pirated optical media products, large volumes of pirated products are
transshipped through Latvia from Russia and Ukraine. The United States urges
Latvia to pass legislation to ensure that customs and police authorities have
the tools needed to combat this piracy, including providing adequate civil ex
parte search procedures. In addition, the U.S. Government urges the police,
customs officials, prosecutors, and judicial authorities to place greater
emphasis on combating copyright piracy.
LITHUANIA
Weak enforcement undermines
Lithuania's attempts to protect the rights of copyright holders. The country
remains flooded with pirated copyrighted materials, including large volumes of
optical media products. In addition, Lithuania is a major transshipment country
for pirate producers to the East who transport their goods to consumers in the
West. Furthermore, Lithuania does not provide protection for confidential test
data submitted by pharmaceutical firms for marketing approval.
MALAYSIA
Optical media piracy remains
a serious problem in Malaysia. Malaysia's production capacity of optical media
exceeds local demand plus legitimate exports, and pirated products believed to
have originated in Malaysia have been identified throughout the Asia-Pacific
region, North America, South America, Europe, Africa and the Middle East.
Although the first year of implementation of the Optical Disk Act was hampered
by a slow compliance schedule, the United States continues to appreciate the
determined efforts made by agencies within Malaysia to eliminate optical media
piracy. The Ministry of Domestic Trade and Consumer Affairs (MDTCA) has
inspected licensed factories and conducted raids against pirate plants. Over the
past two years, the MDTCA has confiscated a significant amount of pirate product
from unlicensed factories and has seized and removed equipment and replication
lines. These actions are evidence that Malaysia is serious about stamping out
piracy. Although progress has been steady, there is concern that Malaysia has
not established a climate of deterrence. Police raids have only infrequently
been followed by criminal prosecutions. Without criminal prosecutions and the
imposition of serious criminal sentences, there is no true deterrence to piracy
in Malaysia The United States urges Malaysia to continue the progress made
against illegal optical disk plants and to focus its attention on the problem of
prosecutorial inaction and judicial delays in order to support the enforcement
efforts already underway.
NEW ZEALAND
In 1999, New Zealand pledged to
introduce legislation regarding imports of newly-released copyrighted products
(e.g., music, films, software and books) intended for sale outside New Zealand.
By the end of 2001, however, the government had not introduced this legislation.
Therefore, the U.S. Government remains concerned about the erosion of the value
of copyright protection and the threat of increased piracy of copyrighted goods
in New Zealand. However, the United States is encouraged that New Zealand's
parliament is currently considering legislation to strengthen New Zealand's
enforcement regime with respect to copyright piracy and trademark
counterfeiting, which may move towards addressing our concerns. The United
States urges New Zealand to adopt legislation to correct the erosion of
copyrights and improve enforcement against piracy and counterfeiting as soon as
possible.
PAKISTAN
Over the past two years,
Pakistan has attempted to address most of its deficiencies in its intellectual
property rights regime. The U.S. Government recognizes and appreciates the
efforts made by Pakistan to improve the protection and enforcement of
intellectual property rights. However, optical media piracy remains a growth
industry in Pakistan. Pakistan has emerged as one of the world's largest
exporters of pirate CDs and optical media. Industry estimates eight illegal
optical media production plants are operating, with actual production of
approximately 55 million units (or ten times Pakistan's legitimate domestic
demand). Pirate goods account for 90% of the domestic marketplace. Similarly,
book piracy remains a significant issue, accounting for $44 million in losses
for U.S. publishers. At present, lengthy registration processes for innovative
drugs offer ample time for generic copies to reach the domestic market despite
apparent patent infringements. The United States urges Pakistan to address its
serious piracy problems, including, in particular, the rampant optical media
piracy situation.
PERU
Peru has continued to
improve intellectual property rights protection, although copyright piracy
levels have remained fairly constant and the criminal enforcement system remains
generally weak. Peru has not yet issued a decree mandating the use of licensed
software by government agencies. On a positive note, during the past year Peru
ratified both WIPO Treaties related to the digital environment. Several
patent-related concerns remain outstanding, the most significant of which
relates to an Andean Tribunal decision ordering Peru to stop issuing "second
use" patents.
POLAND
Poland has a substantial
copyright piracy and trademark counterfeiting problem, the most glaring symbol
of which is the Warsaw Stadium and the unauthorized retail activity that is
carried on in those premises. Although Poland is not a major producer of pirated
optical media products, pirates import unauthorized copies of optical media
products, principally from Ukraine, for sale at the Stadium. Poland's
enforcement efforts at the Stadium so far have been insufficient to halt the
sale of pirated and counterfeit goods. The U.S. Government intends to conduct an
out-of-cycle review (OCR) later this year in order to focus on this aspect of
Poland's intellectual property rights protection regime. In this OCR, the United
States will specifically look to Poland to commence unannounced raids against
retailers at the Warsaw Stadium. These raids, followed by prosecutions, should
be significant enough in number to stem the sale and distribution of pirated and
counterfeit goods at the Stadium. The U.S. Government will also look to Poland
to sustain an adequate and effective enforcement effort against IPR violators in
order to establish a deterrent effect in Poland, including at the Stadium.
In addition, despite the Polish Government restoring the provision for
three-year confidentiality for data submitted to the health authorities by
pharmaceutical firms, shortcomings in the law remain. Specifically, linkage to
the patent term is introduced in the law and the period of data protection runs
from the date of first marketing authorization granted anywhere in the world,
rather than within Poland. Poland agreed to make supplementary protection
certificates available for pharmaceuticals registered since January 1, 2000, as
required by EU law. However, pharmaceutical firms remain vulnerable on certain
older products because they are protected only by process patents.
QATAR
Qatar was removed from the
Special 301 Watch List last year in recognition of its enforcement actions
against copyright infringement, as well as its commitment to amend copyright and
trademark laws to comply with its obligations under the TRIPS Agreement. Qatar
has drafted amendments to these laws, but has not yet signed and implemented the
necessary legislation. Therefore, Qatar is being placed on the Watch List this
year. In addition, although Qatar has pursued some enforcement actions against
copyright infringement, high levels of end-user piracy of unauthorized computer
software continues.
ROMANIA
Piracy of sound recordings,
audiovisual products (videos, broadcast television, and cable television), and
computer software persists at high rates despite reforms to the legal regime.
Inconsistent enforcement and understanding of IPR legislation, the low level of
priority given piracy by regional and local authorities, and the lack of
resources dedicated to combating piracy combine to make intellectual property
rights protection a continuing challenge in Romania.
SAUDI ARABIA
Saudi Arabia has made
notable progress in improving the enforcement of intellectual property rights
over the past year. During 2001, the Ministry of Information stepped up
investigations, raids and seizures, in conjunction with U.S. companies and U.S.
industry groups, and the Ministry of Commerce also established a Fraud Control
Department, which has conducted thousands of inspections and seizures. However,
the United States remains concerned about continued high losses experienced by
U.S. copyright and trademark-based industries and the absence of long-awaited
revised intellectual property rights legislation. U.S. industry has expressed
frustration with the lack of transparency in the enforcement system, procedural
hurdles to judicial enforcement, and the absence of deterrent penalties. Saudi
Arabia is currently working to revise its IPR laws to bring them into conformity
with the TRIPS Agreement as part of its efforts to join the WTO. The United
States looks to Saudi Arabia to strengthen its intellectual property rights
enforcement efforts. In particular, the U.S. urges Saudi Arabia to act quickly
to revise IPR legislation to provide for, inter alia, penalties sufficiently
deterrent to reduce the level of piracy and counterfeiting (including higher
fines and longer prison sentences) and greater access for litigants to court
proceedings at all stages of the judicial process.
SLOVAK REPUBLIC
The Slovak Republic fails to
provide adequate and effective protection for confidential pharmaceutical test
data submitted to obtain marketing approval. The six-year period of protection
for confidential test data submitted for marketing approval in the Slovak
Republic is reduced to the extent the data was submitted earlier in an EU member
state. This is a shortcoming which greatly diminishes the protection of
confidential test data.
TAJIKISTAN
Tajikistan has yet to
fulfill all of its intellectual property rights commitments under the 1993
U.S.-Tajikistan Trade Agreement. Specifically, Tajikistan is not yet a party to
the Geneva Phonograms Convention. In addition, Tajikistan is not providing any
protection or rights to U.S. and other foreign sound recordings, nor does it
clearly provide retroactive protection for works or sound recordings under its
Copyright Law. Criminal penalties for intellectual property rights violations
have not yet been adopted as required by the bilateral trade agreement. In
general, there is weak enforcement of intellectual property rights in
Tajikistan.
THAILAND
Overall, Thailand has made
incremental progress on IPR issues. Pirate optical media production,
distribution and export is a significant and growing problem facing U.S.
copyright industries. Industry estimates a 300 percent increase in pirate
optical disk plants operating in Thailand from 1999. Industry asserts that
Thailand has become a primary destination for criminal organizations seeking new
bases of operation as controls on illicit wares tighten around the region.
Further complicating the protection of IPR in Thailand is the fact that end-user
piracy of business software is endemic, perhaps as high as 76 percent, according
to industry estimates. Thailand's Central Intellectual Property Court remains a
bright spot in the country's efforts to safeguard IPR. The Court's overall
effectiveness, however, is hampered by judicial delays, limited resources, and a
lack of deterrent sentencing. Key high level Thai Government officials have
recently demonstrated a troubling lack of support for the officers of the court
and especially the relevant law enforcement agencies.
While the United States
recognizes some progress has been made in the past year, the significant and
growing problems of optical media production and end-user piracy of business
software remain largely unaddressed. For these reasons, the United States will
re-evaluate Thailand's IPR situation during an out-of-cycle Review to be
conducted in the Fall. The OCR will focus on Thailand's progress in passing and
implementing a satisfactory optical media bill; in implementing the Trade
Secrets Act in a TRIPS-compliant manner; and most importantly, in launching a
sustained enforcement drive against trademark counterfeiting and copyright
piracy, including optical media and illegal end use of business software. The
U.S. Government recognizes the important role played by law enforcement
officials in this process, and encourages Thailand to provide enforcement
authorities the resources and political backing necessary to ensure the
successful implementation of a long-term aggressive enforcement
policy.
TURKEY
Lack of effective IPR
protection in Turkey is a serious concern for the United States. The
pharmaceutical licensing regulations of the Ministry of Health do not appear to
meet Turkey's TRIPS obligations under Article 39.3. The broadcasting regulations
issued last year by the Ministry of Culture undermine the intent of the 2001
copyright law. Piracy levels remain extremely high and government efforts to
control piracy, specifically the "banderole" system, have failed. The U.S.
recognizes, however, that Turkey's recent economic difficulties have consumed
most of the government's attention. The United States encourages Turkey to now
turn its attention to IPR issues, in the context of efforts to attract foreign
investment. In particular, the U.S. Government encourages the Ministry of Health
to amend its pharmaceutical licensing regulations to make them fully consistent
with TRIPS Article 39.3 and encourages the Ministry of Culture to revise its
broadcast regulations to comply with the intent of the 2001 copyright law. The
United States also encourages Turkey to increase the number of raids on sources
of piracy, increase control of pirated material at the border, eliminate–or at a
minimum reform–the banderole system, address the issuance of registrations to
unauthorized distributors of pirate products, increase prosecution of IPR
violations, and impose deterrent sentences.
TURKMENISTAN
Turkmenistan has several
remaining steps to take to fulfill its intellectual property rights commitments
under the 1993 U.S.-Turkmenistan Trade Agreement. Specifically, Turkmenistan is
not yet a party to the Berne Convention or the Geneva Phonograms Convention.
Turkmenistan is not providing any protection or rights to U.S. and other foreign
sound recordings, nor does it clearly provide retroactive protection for works
or sound recordings under its Copyright Law. In addition, criminal penalties for
intellectual property rights violations have not yet been adopted as required by
the U.S.-Turkmenistan Trade Agreement. Furthermore, the Customs Code does not
provide the proper authority to seize material at the border, as is necessary to
conduct effective border enforcement.
UZBEKISTAN
Uzbekistan has many
remaining steps to take to fulfill its intellectual property rights commitments
under the 1994 U.S.-Uzbekistan Trade Agreement. Specifically, Uzbekistan is not
yet a party to the Berne Convention or the Geneva Phonograms Convention.
Uzbekistan is not providing any protection or rights to U.S. and other foreign
sound recordings, and it does not clearly provide retroactive protection for
works or sound recordings under its Copyright Law. As a result, there is
insufficient enforcement of intellectual property rights in Uzbekistan.
VENEZUELA
The U.S. is pleased that,
during the past year, Venezuela sought to defend its issuance of "second use"
patents before the Andean Tribunal, and the National Intellectual Property
Office (SAPI) improved its enforcement operations. The National Anti-Piracy
Brigade (COMANPI) has continued to train and to provide expertise and
enforcement with respect to a variety of IPR violations. However, limited
resources and a lack of IPR enforcement by Venezuela customs have hampered the
government's efforts to lower copyright piracy levels. Venezuelan policies on
pharmaceutical data protection need to be clarified as well so as to make clear
that their practices are consistent with international standards.
VIETNAM
Enforcement of intellectual
property rights (IPR) in Vietnam remains weak, and violations of IPR are
rampant. While Vietnam did conduct considerable administrative and law
enforcement actions against IPR violations over the past year, IPR enforcement
remains the exception rather than the norm. Market access barriers, especially
with regard to "cultural products," continue to impede the availability of
legitimate product, further complicating efforts to combat piracy. In most
cities, according to industry estimates, up to 100 percent of the music CDs,
VCDs, and DVDs on sale are pirated. Trademark violations are also prevalent,
with all types of clothing and other items carrying unlicensed versions of
famous trademarks available at stands throughout major cities. In spite of this
bleak portrait, Vietnam has taken two steps over the last year to strengthen its
IPR regime. First, the U.S.-Vietnam Bilateral Trade Agreement, which entered
into force on December 10, 2001, has major provisions on IPR that commit Vietnam
to make its IPR regime, including enforcement, TRIPS-consistent within two
years. Second, Vietnam continued over the past year to make strong progress in
strengthening its IPR legal and enforcement structures, including implementing
new regulations: (1) extending indefinite protection to well-known or famous
marks; (2) protecting new plant varieties for the first time; and (3) providing
procedures by which IPR owners can petition Vietnam customs to postpone
temporarily the entry or exit of shipments of suspected pirated goods. The
United States encourages Vietnam to effectively implement and enforce its new
laws and regulations to reduce the pervasive piracy and counterfeiting that
continue to exist.